Belgium (Brussels Morning Newspaper)November 12, 2026 – Sri Lanka must formally reapply for the European Union’s Generalised Scheme of Preferences Plus (GSP+) trade concessions before 31 December 2028 under a revised preferential trade framework taking effect on 1 January 2027. The confirmation from Sri Lanka’s diplomatic mission in Brussels follows the country’s participation in a high-level European Commission trade conference and comes amid international scrutiny over Colombo’s proposed Protection of the State from Terrorism Act (PSTA).

Sri Lanka’s Mission to the European Union in Brussels confirmed that all current GSP+ beneficiary countries will be required to submit new applications during a two-year transitional window running from 1 January 2027 through 31 December 2028. While Sri Lanka will continue to receive existing GSP+ tariff preferences throughout that transitional period, continuity beyond 2028 depends on completing the reapplication process under the updated European Union GSP regulation.

The announcement was issued following Sri Lanka’s participation in a high-level conference hosted by the European Commission in Brussels on 4 November 2026. The event marked the 25th anniversary of the European Union’s Everything But Arms (EBA) arrangement and formally introduced the bloc’s renewed Generalised Scheme of Preferences framework, which enters into force on 1 January 2027.

Legislative Scrutiny Over the Proposed Protection of the State from Terrorism Act

The diplomatic update on Sri Lanka’s GSP+ status coincides with sustained diplomatic and legal attention surrounding the proposed Protection of the State from Terrorism Act (PSTA), which the Sri Lankan government drafted to replace the existing Prevention of Terrorism Act (PTA). European Union representatives, United Nations human rights experts, and international legal organisations have warned that enacting the legislation in its current form could place Sri Lanka’s continued access to GSP+ trade concessions at risk.

The PSTA Bill was gazetted in Sri Lanka on 22 September 2026 and presented to Parliament on 6 October 2026. As of November 2026, the legislation had not yet been enacted into law and remained under constitutional review by Sri Lanka’s Supreme Court following the filing of multiple legal petitions challenging its provisions.

Under the EU’s GSP+ mechanism, beneficiary nations receive zero-duty access on a wide range of exports to the European market in exchange for ratifying and effectively implementing 27 international conventions covering human rights, labour standards, environmental protection, and good governance. European Union officials have urged the government in Colombo to narrow the statutory definition of terrorism within the proposed bill so that it aligns with international legal standards.

Legal bodies, civil society organisations, and human rights monitors have stated that the current draft defines terrorism in overly broad terms. Critics and legal analysts have noted that vague definitions within the text could allow arbitrary enforcement and potentially criminalise peaceful public protests, civil society activities, or political dissent.

United Nations human rights experts issued a statement on 9 November 2026 urging Sri Lankan authorities to bring the proposed counterterrorism legislation into compliance with international human rights obligations. Earlier in 2026, the Sri Lanka Core Group at the United Nations Human Rights Council also reiterated calls for the repeal and non-use of the existing PTA while raising concerns regarding the scope of the replacement bill.

The European Union previously suspended Sri Lanka’s GSP+ trade preferences in 2010 over human rights and governance compliance concerns before restoring the concessions in 2017.

Sri Lanka’s Representation at the European Commission Trade Conference

Against this backdrop, Sri Lanka’s diplomatic and private-sector delegation participated in the 4 November 2026 conference held at the Charlemagne Building of the European Commission in Brussels. Ambassador Chandana Weerasena, Sri Lanka’s Ambassador to Belgium, Luxembourg, and the European Union, alongside Minister (Commercial) Thavishya Mullegamgoda, represented the Sri Lankan mission at the proceedings.

During the event, Ambassador Weerasena took part in an official interview conducted by the European Commission’s Directorate-General for Trade. In his remarks, the Ambassador outlined the significance of the Brussels conference for Sri Lanka and detailed the commercial opportunities presented by the renewed EU GSP framework.

Ambassador Weerasena stated that Europe remains one of Sri Lanka’s primary export destinations. According to the diplomatic mission’s account, the Ambassador noted that participation in the EU GSP+ scheme has strengthened Sri Lanka’s export competitiveness, encouraged the growth of export-oriented domestic industries, attracted foreign and domestic investment into export sectors, and integrated local manufacturers into global supply and value chains. He added that these economic gains have supported employment creation and improved household livelihoods across Sri Lanka, particularly among women and vulnerable communities.

Apparel Sector Performance and Reliance on European Union Market Access

A central focus of Sri Lanka’s engagement in Brussels was the performance and outlook of its apparel and textile manufacturing industry. Yohan Lawrence, Secretary-General of the Joint Apparel Association Forum of Sri Lanka (JAAFSL), participated as a featured panellist in a session titled “Business Opportunities through GSP/EBA”.

Mr Lawrence presented the Sri Lankan apparel sector’s perspective on European market access, export expansion, sustainable industrial manufacturing, compliance with European Union regulatory standards, and long-term bilateral trade partnerships. The panel examined how preferential tariff arrangements under GSP and EBA directly support the livelihoods of hundreds of thousands of workers employed across Sri Lanka’s garment manufacturing network.

According to trade figures highlighted by the Sri Lankan mission in Brussels, apparel remains Sri Lanka’s largest merchandise export sector, generating approximately US

5 billion in annual export revenue and accounting for more than 40 per cent of the nation’s total merchandise exports. Fabric and textile exports contribute an additional US

522 million annually.

The European Union represents a major destination for these shipments, absorbing slightly more than 30 per cent of Sri Lanka’s total apparel exports. During the first six months of 2026, Sri Lanka exported US$705 million worth of apparel products to the European Union, with a substantial proportion of those shipments entering the bloc under GSP+ tariff concessions.

Proposal for a European Investment Forum in Sri Lanka

During the conference discussions in Brussels, Ambassador Weerasena formally requested the European Commission’s Directorate-General for International Partnerships (DG INTPA) to organise an Investment Forum in Sri Lanka featuring European investors.

According to Sri Lanka’s Mission to the European Union, the proposed forum is intended to expand export-oriented manufacturing capacity in Sri Lanka, promote broader export diversification beyond traditional product lines, and increase the overall utilisation rate of GSP+ tariff preferences among domestic exporters.

The panel session also evaluated how predictable, long-term market access under the GSP and EBA frameworks assists exporters, institutional investors, and supply-chain developers. Particular emphasis was placed on supporting small and medium-sized enterprises (SMEs) as well as women-owned and women-managed businesses in developing economies to integrate into international markets.

Broader Policy Outcomes of the Brussels Trade Conference

The 4 November 2026 conference brought together representatives from European Union institutions, partner governments, international and regional organisations, private-sector associations, social partners, civil society groups, and academic institutions.

Keynote addresses at the gathering were delivered by European Commissioner for Trade and Economic Security Maroš Šefčovič, World Trade Organisation Director-General Ngozi Okonjo-Iweala, and Chair of the European Parliament’s Committee on International Trade Bernd Lange.

For the past 25 years, the European Union’s Everything But Arms arrangement has granted Least Developed Countries duty-free and quota-free access to the EU single market for all goods except arms and ammunition. Under the revised EU GSP framework scheduled to take effect on 1 January 2027, the bloc aims to renew its unilateral trade preference architecture while maintaining support for Least Developed Countries and sustainable development partners.

Four Core Conclusions Identified by Conference Participants

According to the official summary released following the Brussels proceedings, four primary policy conclusions emerged from the discussions:

Regulatory and Market Predictability: Participants emphasised that stable and predictable trade frameworks remain essential for attracting long-term industrial investment and sustaining cross-border trade flows.
Management of Non-Tariff Measures: Delegates noted that non-tariff requirements—including rules of origin, technical certification, and environmental or social regulatory compliance—increasingly determine whether exporters can effectively utilise preferential market access in practice.
Alignment with the EU Global Gateway: Discussions highlighted the need for closer coordination between the EU GSP trade framework and the European Union’s Global Gateway investment strategy to strengthen domestic productive capacity and encourage local value addition in partner countries.
Inclusive Economic Outcomes: Conference participants stated that the success of preferential trade schemes is measured not solely by aggregate export volumes, but also by the creation of decent employment, the integration of small and medium-sized enterprises, and structural economic diversification.

Delegates further underscored the importance of sustained dialogue between government policymakers and private-sector stakeholders to address trade barriers and maintain mutually beneficial economic partnerships.

Sri Lanka’s Mission in Brussels reaffirmed that the country remains committed to submitting its formal reapplication for the EU GSP+ scheme under the new regulatory cycle prior to the 31 December 2028 deadline in order to preserve tariff-free access to the European market.